SWOT Analysis of Kesko with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis
Lifestyle and Retail
Affordability, integrated, high quality services to retail store chains
Medium to large sized retail stores and chains
Manages retail store chains that are valued by customers, and efficiently produces services for retail store chains' purchasing, logistics, network development and data management.
1. Kesko knows its home market well and has already reacted to changing competitive conditions in it by opening its own discount stores. 2. Well-recognised brand in the Finnish market. 3. Multi-format operations give Kesko an edge in both food and non-food retailing. 4. Strong brand recognition and a good reputation for both quality and value on private label brands. 5. Over three million (out of five million population in Finland) consumers are signed up to the Plussa card, Kesko’s loyalty program
1.Vulnerable on issues relating to pricing, especially with Lidl's presence growing fast. 2. High bargaining power of suppliers due to Kesko’s huge dependence on them 3.Saturation in terms of organic growth especially in the larger formats
1. A fast expansion of the Cassa discount stores can counter the threat from German discounter Lidl. 2. Expand further into the convenience store market with the K-pikkolo chain. 3. The reorganisation of the food business with focus on the K-market banner will clarify operations and create a stronger brand image. 4. Further potential for growth with its recently acquired furniture stores, Asko and Sotka.
1. Consolidation in Finnish markets creating larger competitors 2. Lidl has become a fierce competitor in the Finnish market, lowering profit margins for everyone with its hard discount style. 3. The internal reorganisation of Kesko's food business may temporarily hamper dynamics within the company. 4. Finnish retail market still in nascent stage, infiltration of global retail chains could challenge Kesko's competitive advantage in the long run.
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